New York’s Democrat supermajorities continued to spend far more money than the state takes in in the latest budget that got approved in May. Incredibly, the revenue forecasts for the state are already showing the state budget going into the red as early as next year.
The new budget pushes spending to the highest level in history according to the Empire State for Public Policy. The think tank affirmed that, “A new budget projection shows the state expects expenses to outpace revenues by $9 billion beginning next April… That gap will swell to $13 billion the year after.”
Governor Kathy Hochul (D) and her Democratic Majority in the legislature are recklessly spending too much on public schools and Medicaid.
As noted by the think tank, “Legislators’ top focus should be on New York’s costliest-in-the-nation public schools, which spent over $26,000 per pupil during the 2020-21 school year, or 85% more than the national average. Albany’s aid for school districts exploded from $19 billion in 2011-12 to $34 billion set to go out next year.”
Additionally, “Along with school aid, [which comprises] about half the state budget… New York’s Medicaid spending is poised to surge 13% this year, following a successful pressure campaign by hospitals and health care unions.”
Rather than taking a step back down in overall spending after pandemic relief tailed off, Democrats kept this year’s state budget at elevated levels – locking in an absurdly unaffordable level of spending.
“New York’s budget this year (excluding federal aid and borrowing) is $125 billion — about $23 billion more than it was before the pandemic (notwithstanding some Albany accounting gimmicks),” added Empire Center.
New York is dealing with a host of self-inflicted problems that are causing this predictable budget shortfall – even if the speed at which the budget is imploding is startling. New York’s horrific tax environment, with the highest combined state and local individual tax burden, is driving people out.
The state lost 300,000 people to other states in just one year from 2021-22.
“The Empire State saw the largest annual numeric and percent decline in its population between July 2021 and July 2022, dropping by 180,341 people. Overall, that’s a 0.9% decrease in people living in New York, the bureau reported” (Spectrum News).
The bill is coming due for the state’s profligate spending and the tax base that has to pay it is smaller. What happens next?